All Forum Posts by: Lenny B.

thank you @Jon Huber, very helpful.

I am targeting properties under $260K. Not really interested in flipping, mostly in for a longer term with good cash flow and hopefully appreciation. It looks like Atlanta investment scene is much closer to the 1% rule than most other big cities.

Hello, i am an out-of-state investor interested in opportunities in Atlanta area. My strategy is to find low maintenance (newer or recently remodeled) multi-unit properties (duplex-fourplex) and rent them to families. So, i am looking for good neighborhoods, good schools areas. If someone could suggest some areas or zipcodes that best fit my objectives, that would be much appreciated.

Also, if someone has opinion on the Atlanta prices/rents trend, would love to hear that as well.

thanks.

I wanted to pick the brains of some of the gurus on this forum and help me analyse the Sacramento duplex market. I am looking at the duplex in a good area of Rancho Cordoba around $280K. well maintained, roomy 2 bedrooms. Rents are around $950 for each side (probably under market) with tenants paying electricity. Looking at the bills that landlord pays, I am seeing these monthly expenses:

Gardener: $65/mo
Water: all over the place, between $85 and $250 per month, mostly around $140
Garbage: $140/mo
Mortgage+tax+insurance: $1375/mo
This leaves about $300/mo in positive cash flow. On the $70K down payment, doesn't look like much, especially if you factor in repairs and vacancy rate. 

Thoughts? 

Hello everyone. I am considering buying a duplex in Rancho Cordoba. It runs out that the duplex and the whole street doesn't have gas, so the water heaters  are electric in each unit. I've never dealt with electric water heaters in the past, only gas. 

So, i wanted to find out if it's a plus or minus for me as a landlord, considering that electric bills are paid by the tenants.

thank you,.

Thanks Jerry. Regarding your suggestion of using an existing S corp for RE business, I started S corp for doing on the side software development consulting and wholesale trading. Not sure it makes sense to add RE investment into the mix.

Also, I posed the LLC question to my accountant and here is what he had to say:

"Doing real estate investing in a LLC is a total waste of money. It really has very little advantage, but will cost you about $1,500 in Ca. LLC fees and tax prep costs. It also limts doing 1031 exchanges and allowing each partner to separate out their expenses. An informal partnership is how I've done it for over 40 years"

Hello, my wife and I are beginner RE investor, we just bought our first duplex in Sacramento this year (with existing tenants). We are planning to buy another duplex this year, and maybe more properties in the years to come. We are filing taxes jointly, both have W2 jobs and I have an S-corp and my wife has a sole proprietorship store boutique. I came across articles that suggest doing RE investments under LLC to limit the personal exposure. So, I have a few questions:

- Given our plans and circumstances, does it makes sense to form an LLC for RE investments?

- Does it make sense to transfer our existing duplex into LLC (not sure if Wells Fargo, our lender, even allows it)

- Should we consider buying our next duplex under LLC?

Any feedback is much appreciated. Thank you.